General revision ch 5 & ch 6 PDF

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CH 5 1) Stakeholder theory recognizes the fact that every business decision affects a wide variety of people, benefiting some and imposing costs on others. ⊚ ⊚

2)

true false

Identify a true statement about social responsibility.

A) It refers to the responsibility that society has to ensure a business's success. B) It refers to what a business should or ought to do for the sake of the society, even if it comes with an economic cost. C) It refers to the steps taken by an organization to avoid internal malpractices or misconduct. D) It refers to the responsibility of an organization to fulfill the terms of contract with its employees and lenders.

3)

Which of the following statements is true about the stakeholder theory?

A) It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment. B) It argues that the narrow economic model successfully provides an accurate descriptive and a reasonable normative account of business management. C) It holds that business firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. D) It begins with the recognition that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

4) Philosopher Norman Bowie rejected the economic view that managers are the agents of stockholder-owners and thus they also have a duty to further the interests of stockholders. 1

⊚ ⊚

true false

5) Which of the following statements is true of the common view of corporate social responsibility (CSR)?

A) It states that business has a strict obligation to contribute to social causes. B) It holds that profit is independent of optimal allocation of resources. C) It has its roots in the deontological tradition and Keynesian economics. D) It holds that the primary responsibility of managers is to serve shareholders.

6) Enlightened self-interest, an important justification offered for corporate social responsibility (CSR), presumes that

A) good ethics can also be good business. B) measurement of bottom-line impact of ethical decision making is unimportant. C) bottom-line impact of ethical decision making can be measured and compared. D) profits are independent of ethics.

7) Which of the following statements is true about the economic model of corporate social responsibility (CSR)?

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A) It holds that businesses have social responsibilities beyond the economic and legal ends for which they were created. B) It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged. C) It places shareholders at the center of the corporation and suggests that the ethical responsibility of management is to serve those shareholders. D) It holds that businesses should fully integrate economic and social goals by bringing social responsibilities into the core of their business model.

8)

Which of the following is a challenge associated with ethical pay offs?

A) It is very small in comparison to profits. B) It is very difficult to measure ethical pay offs. C) It ruins the reputation that triggered it. D) It can easily be duplicated by competitors.

9) The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by

A) pursuing social ends as the very core of an organization's mission. B) utilizing a small percentage of profit on social causes. C) doing charitable work to build a good reputation within the community. D) emphasizing the importance of achieving the desired economic goals.

10) The ________ asserts that neither a business nor the individuals who work for it are exempt from the ordinary ethical responsibilities that everyone has to cause no harm, to prevent harm, and to sometimes do good.

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A) stakeholder model of corporate social responsibility (CSR) B) economic model of corporate social responsibility (CSR) C) philanthropic model of corporate social responsibility (CSR) D) integrative model of corporate social responsibility (CSR)

11) Identify a true statement about the integrative model of corporate social responsibility (CSR).

A) It recognizes that some stakeholders have different power and impact on decisions than others. B) It suggests that firms should fully combine economic and social goals by bringing social responsibilities into the core of their business model. C) It argues that every business should adopt the principles of benefit corporations and devote all their activities to service of social goals. D) It recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.

12) ________ recognizes that every business decision imposes costs on someone and mandates that those costs be acknowledged.

A) Keynesian theory B) Integrative theory C) Stakeholder theory D) Institutional theory

13) Which of the following ethical requirements is the type of responsibility established by the precedents of tort law?

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A) duty to engage in charitable work B) duty to find employment for employees injured at work C) duty to not cause avoidable harm to the society D) duty to volunteer for causes related to the environment

14) According to the economic model of corporate social responsibility (CSR), profit is a direct measure of how well a business firm is meeting society's expectations.

15) Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the ________.

A) rights-based ethical framework B) financial framework C) stockholder theory D) classical tradition

16)

Sustainability holds that

A) a firm must not prioritize social goals at the expense of economic growth. B) a firm must place social considerations below tasks beneficial to its growth. C) a firm's financial goals must be balanced against environmental considerations. D) a firm's sustenance is affected by overemphasis on environmental considerations.

17)

Which of the following is the most demanding social responsibility?

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A) B) C) D)

A business should not sell a product that causes harm to consumers. A business should prevent harm even in those cases where it is not the cause. A business should engage in charitable work for the development of the society. A business should volunteer for society or environment-friendly work.

18) The ________ holds that just as charity is a good thing and something that should be encouraged, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics.

A) stakeholder theory B) philanthropic model C) legal model D) integrative model

19) Legislators created a form of business called corporations to encourage people to engage in business activities. ⊚ ⊚

true false

20) The theory that the primary obligation of business managers is to serve the interests of stockholders by maximizing profits is referred to as managerial capitalism ______.

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21) A beverage manufacturing company proceeds to launch its latest energy drink in the market in spite of research findings that suggest that the drink could result in nausea, dizziness, and vomiting after considerable consumption. In this example, the beverage manufacturing company is failing to fulfill its responsibility to ________.

A) do volunteer work B) not cause harm to others C) support charities D) discourage corporate philanthropy

22)

Identify a true statement about the stakeholder theory.

A) It suggests that firms should fully integrate economic and social goals by bringing social responsibilities into the core of their business model. B) It holds that a firm's financial goals must be balanced against, and perhaps even overridden by, environmental considerations. C) It argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management. D) It suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment.

23) The theory of ________ states that the primary obligation of business leaders is to serve the interests of stockholders by maximizing profits.

A) categorical imperative B) ethical relativism C) risk assessment D) managerial capitalism

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24) Which of the following is a feature of the economic model of corporate social responsibility (CSR)?

A) Managers have a primary responsibility to pursue profit outside the limitations of the law. B) Managers are not employees who must work to further the owners' interests, primarily by maximizing profits. C) Shareholders are not at the center of a corporation. D) Corporations are understood to be a particular legal form of property that the owners get to use for their own ends.

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25)

Philosopher Norman Bowie identifies his approach as a kantian theory of business ethics.

27) b 28) true 29) 30) false 32) a 33) b 34) c 35) a 36) d 37) true 38) b 39) d 40) true 41) false 42) true 43)c 46)false 47) 48) c 49) b 51) a 52) a 53) d 54) d

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55) false 56) true 57) a 59) a 60) false 61) a 62) d 64) b 65) d 67) true 68) true 69) a

CH 6 1) The life of one who dies in a workplace accident has ___instrumental _____ value that can be measured, in part, by the lost wages that would have been earned had that person lived.

2) Fundamental questions of justice arise because employees are subject to considerable harms from a lack of security in their jobs and do not have much power to create security.

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⊚ ⊚

true false

3) Which of the following approaches to health and safety at a workplace can be considered paternalistic decision making which treats employees like children and makes crucial decisions for them?

A) acceptable level of risk approach B) government-regulated ethics approach C) market controlled approach D) diversifiable risk approach

4)

In legal contexts, due process refers to ________.

A) the ability to control the manner in which work is performed B) the process of comparing the probabilities of harm involved in various activities C) the procedures that police and courts must follow in exercising their authority over citizens D) the high instrumental value of health and safety

5) The law relating to affirmative action applies only to about 20 percent of the workforce who are subject to Executive Order 11246, which requires affirmative action efforts to ensure equal opportunity. Which of the following is required by courts in order to remedy a finding of past discrimination when Executive Order 11246 is not applicable?

A) quasi-affirmative action B) judicial affirmative action C) executive affirmation action

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D)

voluntary affirmative action

6) Nation-specific studies show that high levels of child labor are associated with high literacy levels. ⊚ ⊚

7)

true false

Identify a challenge associated with the market-controlled approach to health and safety.

A) Employees lack the kinds of free choices that the free-market theory would require in order to attain optimal satisfactions. B) This approach assumes an equivalency between workplace risks and other types of risks when there are significant differences between them. C) This approach ignores the fundamental deontological right an employee might have to a safe and healthy working environment. D) Employees in a free market are treated disrespectfully by ignoring their inputs as stakeholders.

8) ____Diversity____ refers to the presence of differing cultures, languages, ethnicities, races, affinity orientations, genders, religious sects, abilities, social classes, ages, and national origins of the individuals in a firm.

9) Enlightened self-interest would be a valuable theory to introduce and apply in the ________ approach to health and safety.

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A) integrative B) government-regulated C) market-controlled D) acceptable risk

10) Which of the following refers to a policy or a program that tries to respond to instances of past discrimination by implementing proactive measures to ensure equal opportunity today? A) just cause B) gentrification C) bully broads D) affirmative action

11) All of the following are ways through which affirmative action can arise at the workplace except

A) legal requirements. B) judicial affirmative action. C) voluntary affirmative action plans. D) consultant based affirmative action.

12) In the context of downsizing in an organization, allowing a worker to remain in a position for a period of time after she or he has been informed of impending termination might not be the best course of action. Identify a supporting argument for this statement. A) Terminated workers are more likely to be inclined to put their best effort, which might result in temporary improvement in customer service. B) Terminated workers rarely interpret early notice as a measure to get the most out of them before departure. C) Workers are less likely to interpret early notice as an effort to allow them time to

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come to grips with the loss of their jobs. D) Workers who are not terminated are likely to have a very bad impression about the organization for terminating their coworkers.

13) If the risks in a workplace have been reduced to the lowest feasible level and employees are fully aware of them, then a society that respects its citizens as autonomous decision makers has done its duty. ⊚ ⊚

14)

true false

Rewards and compensation structures have no impact on the emotions of workers. ⊚ ⊚

true false

15) An organization hires a lot of African American women and a few disabled people in an attempt to avoid discrimination suits filed against it. Which of the following is most likely to occur?

A) There will be an increase in the number of diversity training sessions. B) A white man or a woman will file a reverse discrimination suit. C) The organization will win an award for equity. D) The performance of the organization will increase.

16)

Which of the following statements is true about child labor?

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A) Regions with a high prevalence of child labor are characterized by low levels of childhood morbidity associated with HIV/AIDS and malaria. B) The risk that child labor will be passed on to the next generation increases because children who work are more likely to earn low wages as adults. C) Research suggests that legalizing child labor will result in an increased number of children who work. D) Nation-specific studies show that high levels of child labor are associated with high literacy levels.

17) The life of one who dies in a workplace accident has ________ value that can be measured, in part, by the lost wages that would have been earned had that person lived.

A) absolute B) instrumental C) intrinsic D) extrinsic

18) For employee health and safety in the workplace, relative risks are determined by comparing the probabilities of harm involved in various activities.

19) Critics in both industry and government argue that OSHA should aim to achieve the optimal, rather than highest feasible, level of safety. Which of the following can be used to achieve this goal?

A) cost-benefit analysis B) cost-utility analysis C) cost-minimization analysis D) cost-effectiveness analysis

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20)

When can we conclude that an activity has an “acceptable level of risk?”

A) if it can be determined that the probability of harm involved in a specific work activity is equal to or less than the probability of harm of some more common activity B) if the probability of harm involved in a specific work activity is acceptable by insurance and workers’ compensation laws C) if it can be determined that the probability of harm involved in a specific work activity is manageable D) if the employers are willing to compensate the harm caused to workers for a specific activity

21) Which of the following affirmative action plans would include training plans and programs, focused recruiting activity, or the elimination of discrimination?

A) judicial affirmative action B) voluntary affirmative action C) executive affirmation action D) quasi-affirmative action

22) In the context of government-regulated ethics approach to health and safety, a true statement about government standards is that

A) they prevent employees from having to face the fundamentally coercive choice between job and safety. B) they are set based on assumptions rather than best available scientific knowledge and thus add to market failures that result from insufficient information. C) they address the “first generation” problem of the market-controlled approach to health and safety by focusing on compensation rather than prevention. D) they favor individual bargaining between employers and employees as the approach

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to workplace health and safety.

23) The process of __downsize______ is the reduction of human resources at an organization through terminations, retirements, corporate divestments, or other means.

24) Philosophically, the right of ________ is the right to be protected against the arbitrary use of authority.

A) self-determination B) freedom of association C) continuance D) due process

25) Companies that place employees at the core of their strategies produce lower long-term returns to shareholders than do industry peers. ⊚ ⊚

true false

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26) true 27) a 28) a 29)b 31)a 32) c 34) c 35) false 36) false 37) a 38) d 39) a 40) true 41) d 43) a 45)true 46)true 47) d 48) a 49) true 50) b 51) b 52) a 53) a 54) b

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55) b 56) a 57) b 58) a 59) c 61) a 62)c 64) false 65) false 66) d 67) true 68) c

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